{"id":161642,"date":"2024-02-13T17:47:54","date_gmt":"2024-02-13T17:47:54","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=161642"},"modified":"2024-02-13T18:03:39","modified_gmt":"2024-02-13T18:03:39","slug":"erc-404-tokens-stirring-controversy","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/erc-404-tokens-stirring-controversy\/","title":{"rendered":"ERC-404 Tokens: Stirring Controversy &#8211; Passing Trend or the Future of Blockchain?"},"content":{"rendered":"<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">TL;DR<\/span><\/span><\/p>\n<ul style=\"text-align: justify\">\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">ERC-404: New standard combines ERC-20 and ERC-721 to split ownership of NFTs.<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Debate: Enthusiasm and concern about their lack of adherence to standards and experimental status.<\/span><\/span><\/li>\n<li><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Progress and challenges: Promising tests in gas cost reduction, but official adoption is still pending.<\/span><\/span><\/li>\n<\/ul>\n<hr \/>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">In the ever-dynamic ecosystem of <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">blockchain technology<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, the recent introduction of the <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">ERC-404 token<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> standard has sparked <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">heated debate among <a href=\"https:\/\/crypto-economy.com\/what-is-ethereum\/\" target=\"_blank\" rel=\"noopener\">Ethereum<\/a> enthusiasts.<\/span><\/span><\/strong><\/p>\n<p><!--more--><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">This <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">innovative standard<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, conceived by the pseudonymous developers behind the <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Pandora project,<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> merges features of the popular <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">ERC-20 and ERC-721 protocols.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Its most striking proposal <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">lies in the ability to split ownership of non-fungible tokens <\/span><\/span><a href=\"https:\/\/crypto-economy.com\/nft-lending\/\" target=\"_blank\" rel=\"noopener\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">(NFTs),<\/span><\/span><\/a><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> allowing multiple wallet holders <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">to share ownership of a single NFT.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">ERC-404&#8217;s potential<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> to <\/span><span style=\"vertical-align: inherit\">revolutionize tokenization <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">has generated both excitement and skepticism<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> within the community.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Some <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">experts<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> consider it a <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">&#8220;game changer&#8221;<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, highlighting <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">its ability to improve liquidity in the<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> highly illiquid NFT market.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">This is supported <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">by the initial success of Pandora&#8217;s ERC-404 tokens<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, which have <\/span><\/span><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">seen <\/span><\/span> <strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">impressive returns and significant market capitalization<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> since their <a href=\"https:\/\/twitter.com\/Pandora_ERC404\/status\/1757355148358164799\" target=\"_blank\" rel=\"noopener\"><strong>launch.<\/strong><\/a><\/span><\/span><\/p>\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">Many of you guys have been asking about optimization for ERC404 and how we plan on scaling and improving on the standard, so we thought we&#39;d share some preliminary test results!<\/p>\n<p>The following is still in development, so the numbers on release may look a little bit different -\u2026 <a href=\"https:\/\/t.co\/dfr2A0CrUr\" target=\"_blank\">pic.twitter.com\/dfr2A0CrUr<\/a><\/p>\n<p>&mdash; Pandora (@Pandora_ERC404) <a href=\"https:\/\/twitter.com\/Pandora_ERC404\/status\/1757355148358164799?ref_src=twsrc%5Etfw\" target=\"_blank\" rel=\"noopener\">February 13, 2024<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<h2><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">However, not everyone is convinced of the potential of ERC-404<\/span><\/span><\/h2>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Critical voices, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">such as Miguel Prada of Diva Staking,<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> express <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">concerns<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> about <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">ERC-404&#8217;s lack of adherence to Ethereum standard procedures,<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> which could hinder its <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">integration and adoption<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> in the ecosystem.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Similarly, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Ryan Lee of Bitget Research<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> points to <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">its experimental status and lack of formal inclusion in the Ethereum Foundation standards<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> as points of concern.<\/span><\/span><\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter size-full wp-image-161644\" src=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/erc.jpg\" alt=\"ERC-404 Tokens: Revolutionizing Blockchain or Risky Experiment?\" width=\"825\" height=\"300\" srcset=\"https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/erc.jpg 825w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/erc-300x109.jpg 300w, https:\/\/crypto-economy.com\/\/wp-content\/uploads\/2024\/02\/erc-768x279.jpg 768w\" sizes=\"(max-width: 825px) 100vw, 825px\" \/><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Despite the doubts raised<\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, proponents such as Haven1&#8217;s Akash Mahendra<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> see ERC-404 <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">as a potential catalyst for the tokenization of real-world assets on Ethereum.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">Mahendra<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> highlights the standard&#8217;s ability to <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">provide users exposure to the functionalities of both ERC-20 and ERC-721 in a single token<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">, opening up new investment and utility opportunities.<\/span><\/span><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">In an effort to address some of the concerns raised, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">the Pandora team has shared preliminary test results on the new version 2.1.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">These tests <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">show significant improvements in reducing gas costs<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> associated with key operations such as <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">minting and transferring ERC-404 tokens.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">As <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">the debate continues and the ERC-404 standard moves<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> towards a possible production implementation, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">the Ethereum community is closely monitoring its evolution.<\/span><\/span><\/strong><\/p>\n<p style=\"text-align: justify\"><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">In the meantime, <\/span><\/span><strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\">enthusiasts and skeptics alike remain attentive to upcoming developments and the Ethereum Foundation&#8217;s final decision<\/span><\/span><\/strong><span style=\"vertical-align: inherit\"><span style=\"vertical-align: inherit\"> on this innovative token standard.<\/span><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>TL;DR ERC-404: New standard combines ERC-20 and ERC-721 to split ownership of NFTs. Debate: Enthusiasm and concern about their lack of adherence to standards and experimental status. Progress and challenges: Promising tests in gas cost reduction, but official adoption is still pending. In the ever-dynamic ecosystem of blockchain technology, the recent introduction of the ERC-404 &#8230; <\/p>\n<p class=\"read-more-container\"><a title=\"ERC-404 Tokens: Stirring Controversy &#8211; Passing Trend or the Future of Blockchain?\" class=\"read-more button\" href=\"https:\/\/crypto-economy.com\/erc-404-tokens-stirring-controversy\/#more-161642\" aria-label=\"More on ERC-404 Tokens: Stirring Controversy &#8211; Passing Trend or the Future of Blockchain?\">Read more<\/a><\/p>\n","protected":false},"author":33,"featured_media":161645,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85,74],"tags":[4620,4656,4679,5001,5402,5026],"_links":{"self":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/161642"}],"collection":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/comments?post=161642"}],"version-history":[{"count":3,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/161642\/revisions"}],"predecessor-version":[{"id":161651,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/posts\/161642\/revisions\/161651"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media\/161645"}],"wp:attachment":[{"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/media?parent=161642"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/categories?post=161642"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/crypto-economy.com\/wp-json\/wp\/v2\/tags?post=161642"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}